Spirit’s Low-Fare Model Breeds Success – And Current Cancellation Issues

The very model by which Spirit Airlines has been able to enjoy success – low fares, no frills, small structure – is the very reason why the carrier is suffering through a second week of massive cancellations.

An airline like Spirit just doesn’t have the depth of other airlines, says its former CEO.

Ben Baldanza told FOX Business that Spirit doesn’t have as many planes, meaning it doesn’t have multiple daily trips between cities, its personnel is limited to keep overhead low and there are no reciprocal

relationships with other carriers.
“American might fly five times a day between two cities,” meaning the airline “could cancel one trip and re-accommodate on the other four,” Baldanza said. Spirit, he added, “mostly flies only one trip a day between every city.”

In fact, some routes don’t even fly every day, making it more problematic for passengers – some of whom have been stranded at airports for more than a day due to Spirit’s wrestling with weather issues, system outages and staffing problems.

Further, Spirit can’t re-accommodate passengers as easily as bigger airlines.

“If Delta cancels a flight, and American has a flight at a similar time, Delta and American have a relationship such that Delta could send their customers to American,” Baldanza said. “American might send their customers to Delta and then every once in a while they settle up on who owes who what for carrying their customers. Spirit doesn’t have those kinds of relationships with other airlines.”

So the low fares that allow Spirit to compete with the big boys – and to keep the pricing structure in place throughout the industry – is also the very reason why the budget carrier doesn’t have the resources to deal with the current issues.

“We’ve spent years investing in the reliable, on-time experience you’ve come to expect with Spirit, and this week we fell short,” current Spirit CEO Ted Christie said. “We’re going to do everything we can to earn back your loyalty.”